Business Bank Accounts for Delaware Companies

By Devin Scott Tuesday, May 28, 2019

Business bank accounts for delaware companiesOnce you form your new LLC or corporation, you’ll need to open a bank account in order to do business.

What do I need to open a business bank account?

Typically, when opening a bank account in the United States, the bank requires:

  • the company's approved Certificate of Incorporation/Formation
  • the company's Federal Tax ID Number (also known as the EIN) 
  • an individual from the company to appear at the bank in person

Although banks are regulated by the federal government, they are also regulated by state banking laws.

Different banks require different documentation, so be sure to contact the bank of your choice to ascertain its requirements for new business bank accounts. Documents that banks may ask for include:

  • Certificate of Authority: The Certificate of Authority, also known as a Foreign Qualification, is obtained through registering your business as a foreign entity in the state in which the company is operating and/or banking. Most banks require a valid Certificate of Authority (achieved through Foreign Qualification) in order to open an account for those companies that have been formed outside of that respective state.

    Foreign Qualification is important because the bank account is the point to which revenue is channeled, and thus it is considered part of a company’s operations. Since every state has its own requirements for Foreign Qualification, we are happy to take care of this detail for you. Our specialists can assist you with the entire Foreign Qualification process. 

  • A Certificate of Good Standing: A Certificate of Good Standing, also known as a Certificate of Existence, is a certificate provided by the Delaware Secretary of State’s office stating your company is current with all Delaware Franchise Taxes, filings and Registered Agent Fees.

    Many banks require a Certificate of Good Standing when a company applies for a loan, a line of credit or wants to open a merchant account. A company may also be asked to present a Certificate of Good Standing before signing a large contract.

    You can order a Certificate of Good Standing online for your company.

If I form a Delaware company, do I have to open a bank account in Delaware?

No. Delaware company owners often open a bank account wherever it is most convenient for them, generally the state in which they are doing business. It is common for Delaware companies to operate all over the world, and banks typically understand this reality.

This is where your Certificate of Authority becomes significant; it lets the bank know that even though the company was formed in Delaware, it is legally registered to operate in your home state as well.

If you have any other questions about business bank accounts, our experts will be happy to assist you. While we do not actually open bank accounts for our clients, we can assist in obtaining the documents the bank will request from your company.

Feel free to call us at 800-345-2677, email us or Skype us at delawareinc. 

Disclaimer

THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.

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There are 22 comments left for Business Bank Accounts for Delaware Companies

Edward Chong said: Saturday, June 29, 2019

Hi, I have a question regarding opening an LLC in Delaware and banking for tax purposes. If I open an LLC in Delaware, and business bank in California, will I be subject to taxes in California? Thanks.

HBS Staff replied: Tuesday, July 2, 2019

Edward, we encourage you to speak with a tax professional for all matters related to taxation. Often, maintaining a business bank account in a state does constitute "doing business" in that state and you may be required to obtain Foreign Qualification to operate there.

Mohammad said: Friday, June 14, 2019

Dear Sir I have registered an online business with Delaware state. I am a green card holder but do not live in the USA. I came a few days back to stay here for a month. I want to open a business bank account in any bank in Delaware. Can you please inform me about the required documents. I am availing of your mail forwarding services. Thanks,

HBS Staff replied: Monday, June 17, 2019

Mohammad, unfortunately we are unable to assist with opening a bank account. Each bank has its own requirements for opening the account. Generally, they will all require you to appear in person, so we recommend contacting some banks with a local branch to your location and asking about their specific requirements.

LE said: Tuesday, June 4, 2019

dear Sir, File Nr. 7217488 I got the EIN NUMBER and how can we get the permit for Car dealer?

HBS Staff replied: Wednesday, June 5, 2019

Le, if you are referring to a business license, this is typically obtained where are physically operating. We do not provide this service, but many of clients have used https://www.licenselogix.com/.

Leopoldo Molina said: Wednesday, May 29, 2019

I have opened a bank account in Florida for my Delaware corporation. The bank only asked me for the certificate or incorporation and the EIN! And put my name as sole Manager. Awesome! Actually I haven’t issued shares yet and I am the only director and officer of my company :P

Hany Gadalla said: Wednesday, May 29, 2019

I tried to open a business bank account in WELLS FARGO in CA. They asked for a proof of address and refused to accept HBS address or a mail forwarding service. Any suggestion to overcome this problem?

HBS Staff replied: Thursday, May 30, 2019

Generally, the physical address is where the company physically operates even if based outside of Delaware. Unfortunately, we’re unable to provide a physical business address as the Harvard Business Services, Inc. address is that of the Registered Agent in Delaware. When a company signs up for Delaware Mail Forwarding services we offer, it enables the company the ability to use the HBS address as the mailing address for the company as we specialize in receiving, scanning and emailing letter mail to our clients in a timely manner. Often times, clients consult with multiple banks to determine their exact requirements for opening the business bank account since each bank is different and has their own policies and regulations.

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